USD/JPY is flashing red, courtesy of overbought conditions. The technical charts are showing early signs of a bearish reversal. BOJ trimmed JGB purchases at regulator operation. The oversold JPY may have picked up a bid on routine QE adjustment. Currently, the USD/JPY is trading at 112.75, having hit a session high of 112.88 and low of 112.65 earlier today. The currency pair’s retreat from the six-month high of 113.14 could be associated with the overbought conditions and signs of bullish exhaustion, as shown by the relative strength index (RSI) and yesterday’s doji candle. Further, the Bank of Japan’s (BOJ) decision to reduce purchases of JGBs maturing in 25-40 years by JPY 10 billion. The central bank has always maintained that these adjustments do not qualify as a policy change and hence markets usually do not respond to routine QE adjustments. However, today’s QE adjustment may have weighed over the USD/JPY pair as the oversold JPY has been looking for reasons to regain some poise. Looking ahead, the pair could suffer a deeper pullback, courtesy of a bearish price-relative strength index (RSI) divergence on the 4-hour chart and falling tops formation on the hourly chart Hourly chart Spot Rate: 112.75 Daily High: 112.88 Daily Low: 112.65 Trend: Bearish Resistance R1: 113.00 (psychological hurdle) R2: 113.27/28 (200-week MA + 61.8 percent Fib of 2017-18 slide) R3: 114.74 *(November 2017 high) Support S1: 112.60 (5-day moving average) S2: 111.99 (10-day moving average) S3: 111.40 (May 21 high) FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Japanese exports to US fall for the first time in 17 months FX Street 5 years USD/JPY is flashing red, courtesy of overbought conditions. The technical charts are showing early signs of a bearish reversal. BOJ trimmed JGB purchases at regulator operation. The oversold JPY may have picked up a bid on routine QE adjustment. Currently, the USD/JPY is trading at 112.75, having hit a session high of 112.88 and low of 112.65 earlier today. The currency pair's retreat from the six-month high of 113.14 could be associated with the overbought conditions and signs of bullish exhaustion, as shown by the relative strength index (RSI) and yesterday's doji candle. Further, the Bank of Japan's (BOJ) decision… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
